Decision No. 15/2019/TT-BTC dated March 18, 2019 of the Ministry of Finance on providing instructions for financial management and operation assessment of credit guarantee funds for small and medium-sized enterprises

DECISION

PROVIDING INSTRUCTIONS FOR FINANCIAL MANAGEMENT AND OPERATION ASSESSMENT OF CREDIT GUARANTEE FUNDS FOR SMALL AND MEDIUM-SIZED ENTERPRISES

Pursuant to the Law on State Budget dated June 25, 2015;

Pursuant to the Law on Credit Institutions dated June 16, 2010 and Amendments of Law on Credit Institutions dated November 20, 2017;

Pursuant to the Law on Enterprises dated November 26, 2014;

Pursuant to the Law on Support for Small and Medium-Sized Enterprises dated June 12, 2017;

Pursuant to Decree No. 87/2017/ND-CP dated July 26, 2017 of the Government regulating functions, obligations, authorization and organizational structure of the Ministry of Finance;

Purusant to Decree No. 34/2018/ND-CP dated March 08, 2018 of the Government on establishment, organization and operation of credit guarantee funds for medium and small enterprises;

In accordance with Head of Department of Banking and Institution Finance;

Minister of the Ministry of Finance issues the Circular providing guidance instructions for financial management and operation assessment of credit guarantee funds for small and medium-sized enterprises.

Chapter I

GENERAL PROVISIONS

Article 1. Scope and regulated entities

1. Scope:

This Circular regulates:

a) The financial management regime for credit guarantee funds for local small and medium-sized enterprises (hereinafter referred to as “Credit Guarantee Funds” or “Funds”) is established, organized and operated according to regulations under Decree No. 34/2018/ND-CP of March 8, 2018 of the Government (hereinafter referred to as the Decree No. 34/2018/ND-CP of the Government);

b) Evaluate the performance of credit guarantee funds.

2. Subjects of application:

a) Credit guarantee fund;

b) Organizations providing loans according to the provisions of Clause 5, Article 3 of the Decree No. 34/2018/ND-CP of the Government;

c) Small and medium-sized enterprises are granted credit guarantee in accordance with provisions of Decree No. 34/2018/ND-CP of the Government;

d) Other relevant organizations and individuals.

Article 2. Principles of financial management

Credit guarantee funds are financially autonomous, self-responsible for their operations according to provisions under law; preserve and develop capital, offset costs and risks in operation; operate on the principles of publicity, transparency, savings and efficiency in accordance with the Decree No. 34/2018/ND-CP of the Government, stipulated in this Circular and relevant provisions of law.

Chapter II

MANAGEMENT OF CAPITAL AND ASSETS OF CREDIT GUARANTEE FUNDS

Article 3. Operating capital of credit guarantee funds

The operational capital of the credit guarantee fund shall comply with the provisions of Article 40 of Decree No. 34/2018/ND-CP of the Government.         

Article 4. Management and use of credit guarantee funds

Credit guarantee funds manage and use capital in accordance with Article 41 of Decree No. 34/2018/ND-CP.

Article 5. Ensuring safety of capital and assets

Credit guarantee funds have to fully comply with the regulations on ensuring the safety of the Funds’ capital and properties, including:

1. Managing and using capital and assets for the right purposes and in accordance with the Decree No. 34/2018/ND-CP of the Government, this Circular and relevant provisions under law.

2. Purchase property insurance, operating risk insurance for credit guarantee activities and other insurance in accordance with law.

3. Appropriation of risk provisions:

a) Fully appropriating provisions for guarantee risks into operation expenses of the Funds in accordance with Article 36 of Decree No. 34/2018/ND-CP of the Government, this Circular and relevant provisions under law;